The prices of gold fell in Asia on Friday after recent earnings that took the metal to its highest level since November, keeping it on track to end January with the views on the trajectory of interest rates in the United States continues to be a question mark for the market.
On the Comex, gold for February delivery fell 0.08% to $1,14.70 a troy ounce.
Spot gold was little changed at $1,114.01 an ounce. Profit-taking on Thursday caused bullion to retreat from a 12-week high of $1,127.80 reached the previous day. For the month, gold was up 5 percent, its biggest such gain since January last year.
Latest data released on Thursday showed new orders for US durable goods recorded their largest drop in 16 months in December, suggesting as growth in the world’s largest economy slowed sharply at the bottom of 2015.
The weak orders for durable goods December underlines the expectation that the tightening cycle by the Fed could be on hold. The data comes ahead of the US in the fourth quarter gross domestic product, due later Friday.
A large sample of analysts are divided largely on the direction to Fed will go with your next move, after checking a statement in January full of ambiguity. Analysts seemed split over whether the status indicates that the Fed could be leaning toward a rate hike later in March or whether the US central bank could delay further tightening measures further than the first quarter.
The decision, according to the Fed statement, depend on labor market conditions, inflation expectations and changing conditions in global financial markets. Notably, the FOMC extracted a phrase that is “reasonably confident” inflation moves towards its goal of 2% from the statement.
At the Multi Commodity Exchange, gold for delivery in February was trading higher by Rs 42, or 0.16%, to Rs 26,791 per 10 grams as speculators widened positions, tracking a firming trend overseas.
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